Between 2010 and 2015, high unemployment, stagnant disposable income, volatile energy costs and a changing mass-market perception of dollar stores contributed to a 3.3 percent growth rate, $66.7 billion in revenue and a $2.6 billion profit for the channel, according to IBISWorld’s September 2015 report titled “Dollar & Variety Stores in the US.”
During the recession, the countercyclical discount retail channel experienced years of growth, even to the point of becoming one of the fastest-growing retail channels during the time period, according to “Dollar & Variety Stores in the US,” an April 2014 report by IBISWorld.
Similar to how fast food restaurants added dollar or value menus in order to entice consumers, the value proposition for discount retailers has helped dollar retail chains gain market share against traditional retail formats.
PepsiCo, Purchase, N.Y., announced a multi-year partnership with Family Dollar Stores Inc., Matthews, N.C., to sell PepsiCo’s beverages in 7,100 stores across 45 states. The multi-year partnership will provide Family Dollar shoppers with access to a variety of products from PepsiCo’s North American beverage portfolio, including Pepsi, Mountain Dew, Sierra Mist, Aquafina and Lipton teas.